Public Liability Insurance for Tradespeople Explained

What is Public Liability Insurance?

Public liability insurance protects you if your work causes injury to someone or damage to their property. If a member of the public, a client, or a third party suffers loss because of your business activities, they could make a claim against you.

Public liability covers:

Compensation payments to the injured party
Legal fees to defend the claim
Court costs if the case goes to trial

Without insurance, you'd have to pay these costs yourself. A single serious claim could bankrupt an individual tradesperson or small business.

Not a Legal Requirement: Unlike employers' liability, public liability insurance isn't legally required. However, many clients, main contractors, and trade bodies require it before you can work for them.

Why Tradespeople Need Public Liability

As a tradesperson, you work in other people's homes and businesses. You use tools and equipment that could cause damage. You create situations where accidents can happen. The risks are real:

A customer trips over your tools and breaks their wrist
You accidentally drill through a water pipe and flood the property
Your ladder damages a client's car
Dust from your work triggers a customer's asthma attack
A fire starts from hot works you're carrying out

Even if you're careful, accidents happen. And even if you're not at fault, you may still need to defend yourself against a claim—which costs money.

Client Requirements

Many clients won't hire you without public liability insurance. This is especially true for:

Commercial clients and businesses
Main contractors on construction sites
Local authorities and public sector work
Property management companies
Insurance-required domestic work

What's Covered by Public Liability?

Injury to Third Parties

If someone is injured because of your work, public liability covers the compensation and legal costs. This includes injuries at your work site, injuries caused by your products or completed work, and injuries from your tools or equipment.

Damage to Third-Party Property

If you damage someone else's property while working, public liability covers the repair or replacement costs. This includes the property you're working on, neighbouring properties, and customers' belongings.

Legal Defence Costs

Even if a claim is unfounded, you'll need to defend yourself. Public liability covers legal fees, expert witnesses, and court costs.

What's NOT Covered: Public liability doesn't cover injuries to your employees (that's employers' liability), damage to your own property or tools, faulty workmanship (the cost to redo work), or contractual liabilities you've specifically agreed to.

How Much Cover Do You Need?

Public liability policies are available with different limits, typically:

£1 million: Minimum for most trades
£2 million: Common requirement for domestic work
£5 million: Often required for commercial work
£10 million: Required for some main contractors

Factors to Consider

What do your clients require?
What's the potential severity of claims in your trade?
Do you work in high-value properties?
Do you work near expensive equipment or stock?
Are you working on construction sites with multiple contractors?

For most tradespeople, £2 million is a sensible minimum. If you work for commercial clients or on larger projects, £5 million is often required. The premium difference between limits is usually modest, so don't underinsure to save a few pounds.

Common Public Liability Claims

Understanding common claims helps you appreciate the risks:

Electricians

Faulty wiring causing fire
Electric shock to customer
Damage to customer's electrical equipment

Plumbers

Water damage from leaks
Flooding from burst pipes
Damage to flooring and ceilings

Builders

Structural damage to property
Injury from falling materials
Damage to neighbouring properties

Roofers

Water ingress from incomplete work
Falling tiles injuring passersby
Damage from scaffold collapse

Getting the Right Cover

When arranging public liability insurance, you'll need to provide:

Your trade or occupation
Annual turnover
Number of employees (if any)
Types of work you carry out
Whether you do any work at height
Whether you use heat or hot works
Claims history

Be accurate and honest when providing this information. If you misrepresent your business, your insurer could refuse to pay claims.

Choosing a Policy

Look for a policy that:

Covers all the types of work you do
Has adequate limits for your clients' requirements
Includes legal defence costs in addition to the limit
Has reasonable excess levels
Comes from a reputable insurer

Tip: Consider a combined tradesman policy that includes public liability, employers' liability (if needed), tools cover, and personal accident. This is often more appropriate than separate policies.